FNCCI Seeks Pro-Investment Budget

Federation of Nepalese Chambers of Commerce and Industries (FNCCI) has urged the government to focus on investment in the upcoming budget. It stressed that the new budget must be an ‘investment budget’

Speaking at an interaction here today, president of the umbrella organization of the Nepali private sector Kush Kumar Joshi called for an end to anarchy and stopping the culture of frequent bandhs, strikes and road blockades. He added, “If bandhs continue, Nepali industrialists will be compelled to close their business.” Joshi also demand compensation for losses caused by bandhs, strikes and road blockades.

FNCCI has requested the government to take strong measures to promote investment in productive sectors. “We want that the upcoming budget be guided by the value of production,” Joshi said. He added that the new budget must lift strapped tax and introduce multiple VAT system. He urged the government not to introduce wealth tax until the federal structure of Nepal is set up. Security of investors and their investment are the main problems in Nepali private sector. Other obstacles are dilemma in adopting an economic policy, laws and their implementation and energy crisis.

“We feel the government is in a dilemma over whether to adopt liberal or mixed economic policy,” said Pradeep Man Vaidhya, chairman of the FNCCI’s Revenue and Tax Committee. FNCCI also urged the government to make a business friendly environment and ensure safety of entrepreneurs along with promotion of private public partnership in infrastructure development, enhancing purchasing power of consumers and promote good governance. Moreover, FNCCI advised the government to set a gross domestic production (GDP) target of 8 per cent for the fiscal year 2009-10. “It is a prerequisite for fast development,” said Vaidhya.

“We can achieve this target if there is peace and a business-friendly environment.” For speedy development, the government must introduce foreign investment policy, industry policy, commerce policy, form an introduce investment board and set up special economic zones within a month, he added. Finance Minister Surendra Pandey todl the FNCCI members that the government would take their suggestions positively and try to incorporate these in the upcoming budget. Finance secretary duo Rameshwor Khanal and Krishna Hari Baskota also assured of their support in including the suggestions in the budget.